Implementing a dual control process when making funds transfers can help prevent fraudulent activity. Simply making more individuals within your organization aware of transactions can identify unusual or suspect requests.
In addition, enabling dual control may qualify organizations for Coalition's Funds Transfer Fraud (FTF) coverage. This provides cover for fraudulent instructions transmitted by electronic means, including through social engineering. Please refer to our policy for full coverage details.
Dual control may include:
- Calling the recipient of the wire transfer at a pre-established number (i.e., not a phone from the communication requesting the transfer) to verify the transaction details. This is a form of secondary authentication.
- Verifying the transaction with another executive at the company (preferably in writing).
- Setting up internal controls within your financial institution. One administrator or user enters or creates a payment (ACH batch, wire transfer), and a second administrator or user is then required to review the payment and approve/release the transaction.
Dual control is the only required element for all risks with FTF coverage. Please note that some policies may have additional requirements; please consult your policy for details if applicable.
If you have any questions or would like a consultation on implementing dual control in your organization, don't hesitate to contact us.
This information is not an insurance policy, does not refer to any specific insurance policy issued, and does not modify any terms and conditions expressly stated in any insurance policy issued.